Interim unaudited consolidated results for the six month period ended 31 December 2014 SOUTHERN VIEW FINANCE LTD (Incorporated in Bermuda with registration number 47305) Class A share codes: BSX: SVF.BH JSE: SVF ISIN: BMG829251013 Class B share codes: BSX: SVFB.BH JSE: SVFB ISIN: BMG 829251195 ("SVF" or "the Company") INTERIM UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2014 Southern View Finance Ltd (the Company) was incorporated in Bermuda on 10 January 2013 and obtained its certificate to commence business on the same day. The Company has been established for the purpose of holding investments. The Company aquired 100% of the share capital in Southern View Finance Mauritius Ltd and Southern View Finance UK Ltd during the 2013 financial year and 100% of the share capital in Southern View Finance SA Holdings (Pty) Ltd during the 2014 financial year (the Group). The Company's primary listing is on the Bermuda Stock Exchange ("BSX"). It has a secondary listing on the Alternative Exchange of the JSE Limited ("AltX"). DESCRIPTION OF THE BUSINESS The Group is an international financial services business, offering affordable and appropriate access to financial service products aimed at the mass market. The Group's aim is to provide low cost financial service products, which currently includes (i) small and affordable loans and may include in the future (ii) mobile banking (iii) money transfers and (iv) micro insurance products. The Group partners with and leverages established retail and other networks to distribute its products. The Group's initial focus has been in South Africa, where it has partnered with a significant clothing and apparel retailer to offer small, low cost loans to its customers. It is in the process of expanding into further jurisdictions. The key business metrics of the Group's loan product are: (1) an average loan amount of R3 500 (2) a loan term of 7 months (3) a targeted monthly cash yield percentage on the loan portfolio of >20% (4) targeted write-offs (all capital, interest and fees) of <12% of all advances and revenues (5) a bad debt provision of < 20% which delivers a provision cover in excess of 100% of non performing loans (6) new loan applications of >100 000 per month BUSINESS REVIEW The Group's performance was in line with all the key internal business metrics listed above. The Gross and Net Loan Book as at 31 December 2014 were R1,974,391,962 and R1,645,065,994 respectively. There were 523 490 active customers at 31 December 2014. DIVIDEND No dividend has been declared for the period under review. BASIS OF PREPARATION These interim unaudited consolidated results for the six month period ended 31 December 2014 have been prepared in accordance with IAS 34 - Interim Financial Reporting, the rules of the BSX and the Listings Requirements of the JSE Limited. ACCOUNTING POLICIES The results below have not been audited or reviewed by the Company's external auditors. The accounting policies adopted are consistent with those published in the Consolidated Financial Statements for the year ended 30 June 2014. By order of the Board Merwe Scholtz Chairman March 2015 SOUTHERN VIEW FINANCE LTD INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014 Unaudited as at Unaudited as at 31 December 31 December 2014 2013 R R Assets Cash and cash equivalents 597 313 552 328 665 365 Loans and advances to clients 1 645 065 994 897 326 504 Property, plant and equipment 163 092 810 1 558 575 Intangible assets 17 827 548 - Other financial assets 70 233 134 7 181 043 Total assets 2 493 533 038 1 234 731 487 Liabilities Loans at amortised cost 804 872 758 335 849 515 Trade and other payables 190 974 546 479 001 734 Current income tax liabilities 16 590 068 - Total liabilities 1 012 437 372 814 851 249 Equity Shareholders' equity 1 481 095 666 419 880 238 Total equity 1 481 095 666 419 880 238 Total liabilities and equity 2 493 533 038 1 234 731 487 SOUTHERN VIEW FINANCE LTD INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2014 Unaudited for the Unaudited for six month period the six month ended 31 period ended 31 December 2014 December 2013 R R Net interest income 483 921 110 52 287 605 Loan fee income 371 449 360 88 777 218 Direct distribution expense (131 602 038) (60 241 918) Net portfolio income 723 768 432 80 822 905 Other income 12 534 477 2 065 103 Operating costs (156 952 444) (57 654 717) Net bad debt written off (304 949 007) (3 526 380) Bad debt provision (71 993 932) (143 207 034) Funding costs (67 361 993) (3 144 485) Other expenses (588 722 899) (205 467 513) Operating profit (loss) before tax 135 045 533 (124 644 608) Income tax expense (23 333 451) - Profit (loss) for the three month period 111 712 082 (124 644 608) Earnings (loss) per share cents Basic 138 (203) Diluted 138 (203) * SOUTHERN VIEW FINANCE LTD INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2014 Share Share Retained Total capital premium earnings Reserves equity R R R R R Balance at 01 July 2013-audited 3 010 30 092 865 (10 332 498) (747 630) 19 015 747 Total comprehensive loss for the six month period - - (124 644 608) - (124 644 608) Shares issued 52 143 525 456 952 - - 525 509 095 Balance at 31 December 2013- unaudited 55 153 555 549 817 (134 977 106) (747 630) 419 880 234 Total comprehensive profit for the period - - 176 434 053 - 176 434 053 Shares issued 24 697 123 045 303 - - 123 070 000 Balance at 30 June 2014-audited 79 850 678 595 120 41 456 947 (747 630) 719 384 287 Total comprehensive profit for the six month period - - 111 712 082 (678) 111 711 404 Shares issued 62 911 649 937 064 - - 649 999 975 Balance at 31 December 2014- unaudited 142 761 1 328 532 184 153 169 029 (748 308) 1 481 095 666 SOUTHERN VIEW FINANCE LTD INTERIM CONSOLIDATED CASH FLOWS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2014 Unaudited as at 31 Unaudited as at 31 December 2014 December 2013 R R Profit (loss) before taxation 135 045 533 (124 644 608) Adjustments for: Depreciation and amortisation 13 535 302 382 635 Tax paid (15 945 455) - Changes in working capital: Loans and other receivables (237 855 391) (904 303 014) Trade and other payables 22 837 221 476 475 793 Net cash utilised in operating activities (82 382 790) (552 089 197) Net cash utilised in investing activities (30 638 730) (1 334 803) Net cash generated from financing activities 147 066 131 861 358 610 Net cash at the beginning of the period 563 268 941 20 730 755 Net cash at the end of the period 597 313 552 328 665 365 * Headline earnings (loss) per share cents Basic 138 (203) Diluted 138 (203) Interests of directors and executive officers: Mr Hendrik van der Merwe Scholtz’s family trust holds approximately 88% (eighty eight percent) of the issued shares in Plus27 Financial Services Holdings Pty Ltd (“Plus27”). Plus27 holds approximately 0.59% (zero point five nine percent) of the issued Class A Shares. Plus27 and its wholly owned subsidiaries hold 90% (ninety percent) of the issued Class B Shares. Registered office Mercury House, 101 Front Street, Hamilton, Bermuda, HM12 Directors: James Keyes(Non Executive), Gregory Toloram (Non Executive), James Bareham (Executive Officer), Hermanus Troskie (Non Executive), Hendrik van der Merwe Scholtz (Non Executive Chairman), Sam Sithole (Non Executive) Auditors: PricewaterhouseCoopers Mauritius Transfer secretary: Computer Share Investor Services (Pty) Ltd Ground Floor, 70 Marshall Street, Johannesburg, 2001, South Africa Registrar and transfer agent: Mercury Group Limited BSX sponsor: Global Custody and Clearing Limited JSE sponsor: KPMG Services (Pty) Ltd Company secretary: Mercury Group Limited 27 March 2015 Date: 27/03/2015 03:00:00 Produced by the JSE SENS Department. 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